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 RALEIGH, N.C., Oct. 21 /PRNewswire/ -- Exide Electronics Group, Inc. (NASDAQ: XUPS), the world's largest supplier of power management and power protection hardware, software and services, today reported record revenues and earnings for its fourth quarter and fiscal year ended Sept. 30, 1993. Revenues for the quarter were $87.5 million, up 35 percent from $64.8 million for the fourth quarter of fiscal 1992. Net income for the quarter was $3,675,000, up 38 percent from $2,663,000 in the fourth quarter of 1992. Primary earnings per share were $0.57 for the fourth quarter of 1993, as compared to $0.44 for the corresponding period in 1992, and fully diluted earnings per share were $0.48 versus $0.40 a year ago. Fully diluted shares outstanding in the fourth quarter were 19 percent higher in 1993 than in 1992.
 Revenues for the fiscal year ended Sept. 30, 1993, were $281.9 million, up 32 percent from $213.4 million in fiscal 1992. Income before the cumulative effect of an accounting change was $8,251,000, up 64 percent from $5,035,000 in 1992. Primary earnings per share before the cumulative effect of an accounting change were $1.25 for 1993, an increase of 52 percent over the $0.82 recorded for the corresponding period in 1992. Fully diluted earnings per share before the cumulative effect of an accounting change were $1.12 versus $0.82 for the same period in 1992, even though fully diluted shares were 28 percent higher for 1993 than in 1992.
 As previously reported, earnings for the first quarter of 1993 were increased by $1 million from the cumulative effect of adopting Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." With the adoption of this standard, the company had net income for the year ended Sept. 30, 1993, of $9,251,000, as compared to $5,035,000 in 1992, and had primary net income per share of $1.42 in 1993 versus $0.82 in 1992. Fully diluted net income per share including the accounting change was $1.25 for the year ended Sept. 30, 1993, as compared to $0.82 per share recorded in 1992.
 The revenue growth over the prior year for the quarterly and annual periods was led by significant increases in sales to the U.S. federal government, primarily from the provision of products and services to the Federal Aviation Administration ("FAA"). Exide Electronics is providing the FAA with uninterruptible power systems ("UPS"), ancillary power equipment, and systems engineering and implementation services at 26 locations under the FAA's Air Route Traffic Control Center Modernization Program. The company is currently installing its UPS products and providing systems implementation services at ten FAA sites, and is developing the engineering design for an additional six locations. In addition, the company experienced moderate commercial growth in its domestic markets. However, this growth was partially offset by sluggish sales in Canada and Europe as a result of continued weakness in their economies.
 Commenting on the Company's record financial performance, Jim Risher, president and chief executive officer, stated: "We are clearly pleased with the company's record results this quarter. It represented our highest quarterly revenues ever, and, sequentially, revenues were $12.4 million or 16 percent higher than the third quarter of 1993, in which we had just set our previous record. However, shareholders should note that, due to seasonal factors, our fourth fiscal quarter is traditionally our strongest quarter of the year, and our first fiscal quarter is traditionally our slowest."
 "We had previously stated that we expected to have a record financial performance in 1993, and we exceeded our expectations. We were especially pleased with the strong sales growth in our Worldwide Services Group, which we had just established as an integrated strategic business unit at the beginning of this fiscal year. In addition, we continue to be excited about our new Powerware(R) Network Power Management Services solutions introduced this year for the high performance LAN, workstation, and personal computer environments. Initial shipments of these products, which began in the fourth quarter, were strong and should accelerate in fiscal 1994."
 "We expect the rate of sales growth during our upcoming fiscal year to moderate from our fiscal 1993 growth rate due to the rapid ramp-up of the FAA program this past year. However, we continue to be excited about the prospects for continued profit improvement based on better operating efficiencies and new product introductions. We will continue to make investments which ensure that Exide Electronics maintains its leadership position in providing state-of-the-art solutions for power management across a broad spectrum of customers and applications."
 Small Systems Fuel Commercial Growth
 The increase in domestic commercial sales was primarily attributable to sales in the small systems market. Revenues this quarter benefitted from the Company's new ONE-UPS(R) line, which provides a low-cost standby solution; its Powerware Network Power Management Services, which encompass the new Powerware Prestige product line for high-performance workstations and networks, as well as enhanced versions of its OnliNet(R) automatic shutdown and monitoring software packages; the 3 kVA Powerware Premier, and the new Powerware Plus 36 model. All of these products were introduced in fiscal 1993.
 Gross Profits Improve/Operating Expense Ratio Declines
 The healthy growth in revenues helped the company's overall gross profits improve by $5.5 million or 30 percent for the quarter and by $15.9 million or 27 percent year-to-date as compared to 1992. Gross profit margins decreased by 0.9 points for the quarter and 1.1 points year-to-date as compared to the corresponding periods in 1992 because of the higher mix of Federal government revenues. The Company's government sales generally have lower gross margin percentages than commercial sales, while generally producing similar operating margins.
 Selling, general and administrative expenses and research and development expenses declined significantly as a percentage of sales to 18.4 percent in the fourth quarter of 1993 from 20.4 percent in 1992, and to 20.0 percent on an annual basis from 22.4 percent in 1992. However, these operating expenses grew in absolute dollars to support the higher level of sales and the continued investment in new products and distribution channels for the company's Small Systems Group. The increases in gross profits, combined with decreases in operating costs and interest expense as a percentage of sales, resulted in the Company's strong earnings growth.
 Exide Electronics is the largest company in the world dedicated exclusively to developing, manufacturing and servicing a full line of power management and power protection systems. Headquartered in Raleigh, N.C., Exide Electronics responds to the power management needs of a broad range of businesses and institutions worldwide, including many Fortune 1000 companies. Exide Electronics' products are used for financial, medical, industrial, telecommunications, military, and aerospace applications -- wherever continuous power is essential to daily operations.
 (in thousands, except per share amounts)
 Quarter Ended Year Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Products $58,430 $49,807 $194,290 $162,242
 Services 29,076 15,041 87,659 51,122
 Total revenues 87,506 64,848 281,949 213,364
 Cost of revenues
 Products 42,972 37,959 146,162 124,129
 Services 20,766 8,666 60,764 30,073
 Total cost of revenues 63,738 46,625 206,926 154,202
 Gross profit 23,768 18,223 75,023 59,162
 Selling, general and
 administrative expense 13,936 10,919 48,176 40,223
 Research and
 development expense 2,181 2,297 8,265 7,616
 Income from operations 7,651 5,007 18,582 11,323
 Interest expense 1,100 1,250 4,244 4,714
 Interest income (123) (168) (466) (559)
 Other (income)
 expense 164 (340) 472 (923)
 Income before income
 taxes and the
 cumulative effect of
 accounting change 6,510 4,265 14,332 8,091
 Provision for income
 taxes 2,835 1,602 6,081 3,056
 Income before the
 cumulative effect of
 accounting change 3,675 2,663 8,251 5,035
 Cumulative effect of
 accounting change for
 income taxes --- --- 1,000 ---
 Net income $ 3,675 $ 2,663 $ 9,251 $ 5,035
 Preferred stock
 dividends 247 184 1,071 484
 Net income available to
 common shareholders $ 3,428 $ 2,479 $ 8,180 $ 4,551
 Per share amounts:
 Income before the
 cumulative effect of
 accounting change $0.57 $0.44 $1.25 $0.82
 Cumulative effect of
 accounting change for
 income taxes -- -- 0.17 --
 Net income $0.57 $0.44 $1.42 $0.82
 Weighted average number
 of common and equivalent
 shares outstanding 5,987 5,573 5,760 5,529
 Fully diluted
 Income before the
 cumulative effect of
 accounting change $0.48 $0.40 $1.12 $0.82
 Cumulative effect of
 accounting change for
 income taxes -- -- 0.13 --
 Net income $0.48 $0.40 $1.25 $0.82
 Weighted average number
 of common and equivalent
 shares outstanding 8,009 6,758 8,004 6,233
 -0- 10/21/93
 /CONTACT: (Media) Karin Cram, Corporate Communications, 919-870-3239, or (Investor) Marty Kittrell, Chief Financial Officer, 919- 872-3020, both of Exide Electronics Group/

CO: Exide Electronics Group, Inc. ST: North Carolina IN: CPR SU: ERN

CM-SB -- CH020 -- 2163 10/21/93 18:07 EDT
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Publication:PR Newswire
Date:Oct 21, 1993

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